'This facility is meant to allow equal access,' said Pant. 'I’m proud that Parliamentary Development funds could support such a progressive initiative and show the world that we are a country that celebrates diversity and wants to offer equal protection to all citizens.'

Blue Diamond Society says it has received hundreds of reports in recent years from third gender and gender-variant members who have been harassed or faced violence when they try to use public toilets marked 'male' and 'female'.

Dozens of transgender, third gender and other Blue Diamond Society members attended the toilet opening ceremony and applauded what they see as a signal of progress for their city and their human rights movement.

'This kind of project is a revolution to respect gender-variant people in the most fundamental way – allowing them safe access to public facilities for their basic needs,' said Pant.

'I’m not sure whether the United Nations will recognize this move or not, but this is a challenge to them to recognize the unrecognized LGBTI population around the world – they could start with the toilets in their own offices.'

Nepal has had a legally recognized third gender since 2007, when it was ruled that gender identity should be based on self-identification.

In 2008 Nepal's Supreme Court ruled that it would end discrimination to LGBT people, including the right to marry. The law allowing same-sex marriage is likely to be part of the new constitution which is expected to be finalised before 31 May this year, following a six month extension.